Exam 10: Mutual Assent

Action Play Equipment ordered 200 feet of chain,400 clasps,and 50 swing seats from Brace Company for $1,600 to be delivered within three weeks of the order.Brace sent back an acceptance form which stated payment was due within 30 days of delivery or a finance charge of 2% per month would be added to the balance.What is the status of the interaction between Action and Brace?

Ricardo posts a sign in the neighborhood offering $50 for the return of his Saint Bernard.Alicia,who knows nothing of the reward,finds the dog and returns it to Ricardo.Alicia is entitled to the reward.

If Megan intends to offer and believes she is offering for sale to Alexis her RL1500 space heater and Alexis reasonably believes Megan is offering her RL1900 heater and accepts on that belief,a contract has not been formed because there was no agreement as to the subject matter.

A defective acceptance does not create a contract,but does constitute a new offer.

An acceptance is generally effective upon dispatch.

When does acceptance of an offer to enter into a unilateral contract generally occur?

An acceptance that contains terms different from or additional to those in the offer receives the same treatment under the common law and under the UCC.

Which of the following would most likely be a merchant with respect to the goods in question under the UCC definition?

Death or insanity of either the offeror or the offeree ordinarily terminates the offer.

A contractual agreement always involves either a promise exchanged for a promise or a promise exchanged for a completed act or forbearance to act.

In an output contract,the seller can operate a factory on a 24-hour-a-day schedule and insist that the buyer take all of the output when that buyer had operated only eight hours a day at the time the contract was made and the buyer had knowledge only of the eight-hour-a-day operating schedule.

a. What are the three essentials of an offer? b. How does one distinguish between an offer and an invitation seeking offers?

In the Osprey L.L.C.v.Kelly-Moore Paint Co.,Inc.case,the Supreme Court of Oklahoma held that:

On Tuesday morning John sends a letter to Arlene rejecting her offer,but later the same day John changes his mind and sends a letter of acceptance to Arlene.The letter of acceptance will be effective only if it is received by Arlene before she receives the rejection.

Lyle offers to sell his house to Dennis for $95,000.Dennis responds,"I will pay you $95,000 for the house if you first paint the second floor." This response could best be described as:

Which is not a revocable offer?

The Code's firm offer rule applies only to offers in writing that are made by a merchant offeror.

Wes,who is an art collector,offered to buy a print from Le Monde Gallery.Le Monde balked at the price,sending Wes a letter of rejection.That day it discovered that the print was not as highly valued as originally thought.Le Monde immediately telephoned Wes to accept his offer.Is there a contract?

Under FTC regulations and state legislation,a seller may not advertise goods at one price and then raise the price once demand has been stimulated.

Discuss how parties show mutual assent and what standard is used to determine agreement.